QUESTION 4(10 MARKS)

Answer the following short questions:

4.1 What is the duty of a purchaser when faced with a threatening eviction with regards to a purchase and sale contract? (3 marks)

4.2 What are the legal requirements for the transfer of ownership of a thing in a contract of purchase and sale? (2 marks)

4.3 Identify the form of delivery that took place in each of the following situations:

Rita buys a car from her brother, Ronald. The parties agree that Ronald will keep the car until Rita obtained her driver's license. (1 mark)

4.4 Explain the difference between the passing of the risk rule and the rule of the impossibility of

Performance (2 marks)

4.5 What are the legal implications of an oral credit agreement in terms of the Credit Agreement Act 75

OF 1980? (2 marks)

QUESTION 5 (10 MARKS)

Mary bought computers from a public auction (regulated by the rules of the Magistrate's court-sale in execution). Mary runs a computer school. John one of Mary's students is employed at ComputerLand as a technician. He notices that some of the computers that Mary bought at the auction were stolen from his employer, some time back and had not been recovered. John informs the employer about the computers who approaches Mary and demands that Mary hands the computers to him. Mary is confused and wonders whether she should hand over the computers to him. Advise Mary.